Building Financial Independence Beyond the Stock Market

Financial independence is a goal for a lot of folks. But what does it take to get there? My guest today explores that question on his website, Financial Samurai. His name is Sam Dogen, and before writing about money online, he worked in finance. We begin our conversation discussing how his career in equities shaped his personal finance philosophy and made him leery of putting too much wealth in the stock market. Sam shares why he recommends putting a lower percentage of your money in stocks than is often recommended in mainstream finance advice, how that percentage should shift as you get older, and alternative ways to invest, build your wealth, and create multiple streams of income that will give you more control over your fortunes. Sam then shares what it means to be financially independent and some of the blindspots he thinks exist in the FIRE, or Financial Independence/Retire Early, movement. We end our conversation talking about how to plan your financial life for the future, especially concerning what the changing world will be like for your kids.

Show Highlights

  • How Sam’s net worth was affected by the ’09 crash
  • Why Sam diversified away from the stock market
  • How Sam’s philosophy towards money differs from many financial experts out there
  • Forecasting your future — and the worst-case scenario — when it comes to your money
  • How Sam’s fairly conservative approach has helped him in the long run
  • Why your investments should have some utility
  • Investing in real estate without being a landlord
  • The wisdom of stability — in both your career and your locale
  • Changing your investment strategy as you age
  • Why Sam advocates starting a business as an investment strategy
  • The FSDAIR framework for paying off debt
  • The FIRE (Financial Independence, Retire Early) movement
  • How to calculate how much you need to retire early
  • Blind spots people have when it comes to financial independence
  • How do you plan for your kids’ future?